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Algeria to benefit from telco liberalisation

MNP and local loop unbundling to benefit the country

Algeria to benefit from telco liberalisation
Algeria is set for a 2013 rollout of 3G.

Algeria is set to become more competitive as 3G is introduced in 2013 and expected regulatory changes allow number portability and local loop unbundling, according to a new report from Pyramid Research.

The Algerian communications market generated revenue of $4.9bn in 2012 and Pyramid Research predicts this will rise to $5.65bn for 2017.

The mobile sector alone produced revenue of $3.6bn in 2012. The arrival of 3G will boost mobile data ARPS, which should generate 24% of total mobile ARPS by 2017.

Pyramid Research pointed out that the Algerian government is talking to Amsterdam-based VimpelCom to acquire its 51% stake in Djezzy: by the end of 2013, the government should be the strongest player in both the fixed and mobile segments, the research firm said.

"Now that that conflict is winding down and new regulations are on the way, we project that the market will grow faster than in previous years. We expect Djezzy and ATM Mobilis to hold nearly 75% of the mobile market throughout the forecast period, but we also expect Nedjma to continue to compete strongly against these two government-controlled powerhouses," Pyramid Research states.

The report added that circuit-switched service generated 74.6% of total fixed revenue in 2012, although Pyramid expects this figure to fall to 63.1% by 2017 because of the increase in revenue from Internet access. It also forecast that broadband will capture 99% of total Internet access revenue by 2017.

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